Founder, BWS Financial Inc

Hamed Khorsand

Founder

Independent Stock Specific Research

BWS Financial Inc

BWS provides independent stock specific research focused on companies with distinct value that are going through a special situation where there is a tangible catalyst not priced in. The catalyst can be anything from new product, restructuring, M&A, management change, change in business strategy, etc. BWS’s focus is to understand the change and evaluate the potential return for investors.

BWS utilizes a self formed proprietary approach in discovering stocks by putting great emphasis on deep research. BWS does generate short recommendations following a similar criteria.

Equity Bottom-Up

<ul>
<li>GTX reported first quarter results exhibiting the sales decline management had been warning could appear in the first half of the year</li>
<li>GTX managed to generate positive free cash flow to repurchase $109 million worth of the stock in the quarter. GTX has been routinely buying back stock with free cash flow.</li>
<li>GTX maintained its annual guidance on all metrics with management asserting much of the growth would come in the second half of the year</li>
</ul>


GTX reported first quarter results exhibiting the sales decline management had been warning could appear in the first half of the year
GTX managed to generate positive free cash flow to repurchase $109 million worth of the stock in the quarter. GTX has been routinely buying back stock with free cash flow.
GTX maintained its annual guidance on all metrics with management asserting much of the growth would come in the second half of the year


<ul>
<li>Garrett Motion (GTX) is putting greater emphasis on its zero emission products with investors even though the auto industry continues to see a slow uptake in electric vehicles</li>
<li>Automakers have put greater focus on hybrid vehicles, which should give GTX a boost in sales in coming quarters as demand for the Company’s products increases</li>
<li>Automakers have deviated from their initial electric vehicle launch calendars with the latest being Ford Motor (F) shifting a 2025 release date to 2027</li>
</ul>


Garrett Motion (GTX) is putting greater emphasis on its zero emission products with investors even though the auto industry continues to see a slow uptake in electric vehicles
Automakers have put greater focus on hybrid vehicles, which should give GTX a boost in sales in coming quarters as demand for the Company’s products increases
Automakers have deviated from their initial electric vehicle launch calendars with the latest being Ford Motor (F) shifting a 2025 release date to 2027


External reports (aggregated public sources), Value Investors Club

Value Investors Club

External reports (aggregated public sources)

Key points<ul><li>GTX has a market capitalization of $1.8bn and an enterprise value of $3.3bn, with management forecasting $1.7-2.1bn in free cash flow over the next 5 years</li><li>Despite concerns of high FCF yields indicating value traps, the author believes GTX is undervalued and could potentially double in value over the next 3 years</li><li>The author highlights GTX's strengths and sees it as a good investment opportunity, emphasizing its potential for growth and value appreciation</li></ul>This content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Key pointsGTX has a market capitalization of $1.8bn and an enterprise value of $3.3bn, with management forecasting $1.7-2.1bn in free cash flow over the next 5 yearsDespite concerns of high FCF yields indicating value traps, the author believes GTX is undervalued and could potentially double in value over the next 3 yearsThe author highlights GTX's strengths and sees it as a good investment opportunity, emphasizing its potential for growth and value appreciationThis content is sourced through publicly available sources and has been machine generated. Information displayed is for general informational purposes only. This article was originally published 3 months ago on Value Investors Club.

Garrett Motion Inc (GTX) - Monday, Nov 27, 2023

<ul>
<li>GTX reported results affirming our investment thesis on how the business can generate substantial free cash flow with an outlook of little to no sales growth</li>
<li>Ahead of the results, we had brought down our numbers on the expectation a flattish year could result in sales and adjusted EBITDA being more in line with 2023</li>
<li>GTX issued a 2024 guidance suggesting we would be towards the lower end of their guidance range as new programs should hold sales closer to 2023 levels</li>
</ul>


GTX reported results affirming our investment thesis on how the business can generate substantial free cash flow with an outlook of little to no sales growth
Ahead of the results, we had brought down our numbers on the expectation a flattish year could result in sales and adjusted EBITDA being more in line with 2023
GTX issued a 2024 guidance suggesting we would be towards the lower end of their guidance range as new programs should hold sales closer to 2023 levels


<ul>
<li>In the weeks since our last update on GTX, there have been several quarterly reports suggesting a cooling in inventory purchases.</li>
<li>We are reducing our 2024 estimates to better align expectations with the reality of how companies related to the auto industry have been reporting.  </li>
<li>In the year ahead, GTX should benefit from a higher Euro to US Dollar exchange rate and the auto industry depending less on electric vehicles and more on hybrid.</li>
</ul>


In the weeks since our last update on GTX, there have been several quarterly reports suggesting a cooling in inventory purchases.
We are reducing our 2024 estimates to better align expectations with the reality of how companies related to the auto industry have been reporting.  
In the year ahead, GTX should benefit from a higher Euro to US Dollar exchange rate and the auto industry depending less on electric vehicles and more on hybrid.


Switzerland

Garrett Motion Inc. operates as an automobile technology provider. The Company offers turbocharging, electric boosting, and automotive software solutions. Garrett Motion serves customers worldwide.

Garrett Motion (GTX US)

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Garrett Motion Inc (GTX) - Monday, Nov 27, 2023

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